- Consolidated sales were $22.3 million compared with $63.3 million for the second quarter of 2008;

- Shipped 34 metric tons (mt) of solar grade silicon (upgraded metallurgical silicon or "UMSi"), at an average selling price of $39 per kilogram, and produced 243 mt of UMSi;

- Earnings before interest, taxes, depreciation, and amortization (EBITDA) (1) was negative $9.9 million compared with negative $15.9 million for the first quarter of 2009 and $6.6 million for second quarter of 2008;

- Net loss was $24.0 million, or $0.20 per share, compared with a net loss of $7.0 million, or $0.07 per share, for the second quarter of 2008;

- Adjusted loss (2) was $17.2 million compared with adjusted income of $4.7 million for the second quarter of 2008;

- Implemented cost containment plan that included the temporary curtailment of silicon metal production, the reduction of solar grade silicon production to levels that are in line with customer orders and the deferral of further capacity expansion of the solar grade silicon facility pending recovery of demand for solar grade silicon;

- Settled claims with two UMSi customers regarding repayment of outstanding deposit liabilities through (i) the issuance of $5.6 million in Timminco common shares and (ii) agreeing to a repayment schedule through to the end of 2010 for Euro 8.9 million;

- Named John Fenger as President and Chief Operating Officer;

- Completed an equity offering by way of a private placement to AMG Advanced Metallurgical Group N.V., generating net proceeds of $14.7 million; and

- Announced the restart of one of the three silicon metal electric arc furnaces in late June 2009 in response to increased demand for silicon metal.

Developments Subsequent to the End of the Second Quarter Fiscal 2009

- Completed a debt financing for $25.0 million in the form a two-year term loan from Investissement Quebec;

- Completed the sale of the principal components of the remaining magnesium business to Applied Magnesium International Limited, in which Timminco acquired a 19.5% equity interest;

- Completed the wind down of operations at the magnesium extrusion facility in Aurora, Colorado;

- Amended its credit agreement to revise the financial covenants, such that the Company is currently in compliance with these revised covenants as of June 30, 2009, and to extend the maturity of the revolving credit facility to July 2, 2010; and

- Announced on August 6, 2009 that the Company will restart a second silicon electric arc furnace in response to further increased silicon metal demand.

"During the quarter, we continued to execute our short-term strategy focused on preserving capital, managing costs and reducing our working capital requirements to position the company for the eventual recovery of our customer markets," said Dr. Heinz Schimmelbusch, Chairman of the Board and Chief Executive Officer of Timminco. In addition, the completion of the divestiture of our magnesium operations subsequent to quarter end will allow us to focus our resources solely on the silicon business. Our short-term objective is to achieve financial stability through the phased restart of our traditional silicon metal business. We have made some progress in this regard, highlighted by resumption of shipments of silicon metal to one of our high-volume long-term customers in June, and the announcement last week that we will resume operations of a second electric arc furnace and recall a portion of laid off employees to satisfy further increases in demand."

Dr. Schimmelbusch added, "With respect to solar grade silicon operations, during this period of very low demand driven by a weakened world economy and difficult financial markets and exacerbated by the decline in polysilicon spot prices, we are focusing our efforts on improving our operations with the objective of enabling our customers to create wafers and cells that are indistinguishable from solar cells made from polysilicon. This would meet the increased quality requirements demanded by our customers this year."

Dr. Schimmelbusch concluded, "We have been very pleased in the manner that Investissement Quebec completed the $25 million debt financing for Becancour Silicon, showing the support of the Quebec government for our silicon business."

Financial Results

Global economic conditions have negatively impacted financial and industrial markets in North America, Europe and Asia during the first six months of 2009. These developments have had a substantial adverse affect on the Company's business. In particular, many of the Company's customers are experiencing low sales and have reduced or deferred their purchases. The resulting reduction in revenue, combined with unabsorbed overheads and significant capital expenditures led the Company to raise common equity capital in February and April 2009. During the second quarter, the Company implemented certain initiatives in its Silicon Group to reduce capital and operating expenditures and accelerate reduction of working capital. These initiatives included temporarily closing production of silicon metal and curtailing production of solar grade silicon by temporarily shutting down four of its solar grade silicon purification lines. These actions, which will reduce costs in future periods, negatively impacted second quarter results. The Company believes that difficult economic and market conditions will continue to impact its operations and financial results for the foreseeable future.

As of the end of the second quarter of 2009, Timminco had two reporting segments: the Silicon Group, which includes the silicon metal and solar grade silicon product lines, and the Magnesium Group, which includes the magnesium extrusion, fabrication and specialty metals product lines.

Net loss for the second quarter of fiscal 2009 was $24.0 million or $0.20 per share compared with a net loss of $7.1 million or $0.07 per share for the second quarter of fiscal 2008. The loss in 2009 included environmental remediation costs of $0.1 million and future income tax losses of $6.6 million. Excluding these items, adjusted loss for the second quarter of 2009 was $17.2 million. Net loss for the first six months of 2009 was $46.3 million, or $0.41 per share, compared with a net loss of $7.6 million, or $0.07 per share, for the first six months of 2008. Net loss for the first six months of fiscal 2009 included reorganization costs of $3.8 million related to closure of the Magnesium Group's Aurora, Colorado facility, an additional write down of $0.7 million on the impairment of the Fundo Wheels investment and environmental remediation costs of $0.3 million and future income tax losses of $1.7 million.

Cash, cash equivalents and short-term investments at June 30, 2009 were $1.6 million compared with $4.6 million at December 31, 2008. The Company had funds available to it through its revolving credit facility at June 30, 2009 of US$2.5 million. During the second quarter, Timminco completed an equity offering of 7.4 million common shares at a price of $2.02 per share for aggregate gross proceeds of $15.0 million (net proceeds of $14.7 million). Also during the second quarter, Timminco amended its credit agreement to revise financial covenants, such that the Company is currently in compliance with these revised covenants as of June 30, 2009, and to extend the maturity of its revolving credit facility from March 31, 2010 to July 2, 2010. Subsequent to quarter end, the Company completed a $25.0 million debt financing in the form of a two-year term loan with Investissement Quebec.

Silicon Group

During the second quarter of 2009, the Silicon Group faced challenging market conditions for both its regular silicon and its solar grade silicon products. Low sales volume combined with high costs related to certain inefficiencies created a substantial net loss for the Group for the quarter.

For the second quarter and six months 2009, Silicon Group sales were $8.3 million and $31.9 million, respectively, compared to $45.0 million and $79.8 million in second quarter and six months 2008, decreases of 82% and 60%, respectively. The decreases in sales arise from declines in sales volumes and lower average selling prices. For the second quarter 2009, the weakness of the Canadian dollar against the U.S. dollar and the Euro had a favourable impact on sales of $0.6 million and nil, respectively ($3.3 million and $0.2 million respectively for the six months 2009). Solar grade silicon net revenues were $1.3 million (34 metric tons) and $8.5 million (165 metric tons) for the second quarter and six months 2009, respectively, and $13.7 million (221 metric tons) and $20.2 million (321 metric tons) for the second quarter and six months 2008 periods. The average selling price for solar grade silicon decreased to $39 per kilogram for second quarter 2009, compared to $62 per kilogram during second quarter 2008, reflecting softened market conditions. Sales of silicon metal products were $7.0 million and $23.4 million for the second quarter and six months 2009, compared to $31.3 million and $59.5 million for the same periods in 2008. The decrease in silicon metal product sales in 2009 relates to reduced volume reflecting global market conditions for silicon.

Gross profit for the second quarter and six months 2009 were negative $8.1 million (97.7% of sales) and negative $18.4 million (57.5% of sales), compared to positive gross profit of $10.1 million (22.4% of sales) and positive $14.6 million (18.3% of sales) in the second quarter and six months 2008. The main contributor to the negative margin for the Silicon Group was the low volume of solar silicon produced relative to available production capacity, as well as production costs attributable to the reprocessing of byproducts. The production costs attributable to the reprocessing of by-products into saleable material cannot be fully recovered through the selling price of these products and are expensed as incurred in the period as inventory is carried at the lower of average production cost and net realizable value. Total solar grade silicon product cost of sales for the second quarter and six months 2009 were $10.7 million and $30.4 million. In the second quarter 2009, the Silicon Group focused on cost reduction efforts with the temporary closure of silicon metal production and four solar grade silicon purification lines.

Negative EBITDA of $7.8 million and $19.6 million for second quarter and six months 2009 reflect the significant costs incurred in the solar grade silicon operations. The Silicon Group had positive EBITDA of $9.1 million and $11.6 million in second quarter and six months 2008.

Net loss for the second quarter and six months 2009 were $18.5 million and $29.0 million, compared with net income for the comparable periods of 2008 of $5.8 million and $6.8 million. The larger losses are due to lower revenues from both product lines, higher costs of production from solar grade silicon, increased amortization costs of the property, plant and equipment and income taxes.

During the second quarter of 2009, the Silicon Group expended approximately $11.0 million in its solar grade silicon production facility. These expenditures reflect the disbursement of cash to pay for capital expenditures incurred or committed in the first quarter of 2009. The Silicon Group has deferred further capital expenditures on its purification facility until such time as customer orders for solar grade silicon exceed existing capacity.

Magnesium Group

Sales for the Magnesium Group for the second quarter of 2009 were $14.0 million compared with $18.3 million for the second quarter of 2008. Sales for the first six months of 2009 were $28.1 million compared with $31.1 million for the first six months of 2008. The decreases were primarily the result of lower sales volumes due to the weak US economy, which were partially offset by price increases across most product lines in response to higher magnesium metal costs.

Gross profit for the second quarter of 2009 was negative $1.0 million, or negative 6.8% of sales, compared with $2.2 million, or 11.9% of sales, for the second quarter of 2008. Gross profit for the first six months of 2009 was $nil compared with $3.4 million, or 10.9% of sales, for the first six months of 2008.

EBITDA for the second quarter of 2009 was negative $1.1 million compared with $0.1 million for the second quarter of 2008. EBITDA for the first six months of 2009 was negative $2.2 million compared with $0.2 million for the first six months of 2008.

Net loss for the second quarter of 2009 was $1.3 million compared with a net loss of $9.9 million for the second quarter of 2008 when the Group recorded charges relating to the closure of its Haley, Ontario facility and impairment of assets in that facility. Net loss for the first six months of 2009 was $6.4 million compared with a net loss of $9.9 million for the first six months of 2008. The decrease in net loss is primarily attributable to higher reorganization costs recorded in 2008 compared with 2009.

Subsequent to the end of the second quarter of 2009, Timminco completed the divestiture of its magnesium business through the sale of the principal components of its magnesium business to Applied Magnesium International Limited. Timminco also acquired a 19.5% equity stake and promissory notes in this company.

----------------------------------------------------------------------------Weighted average number of common shares outstanding, basic and diluted 117,867,509 104,082 113,395,361 104,040----------------------------------------------------------------------------

Timminco will file its unaudited consolidated financial statements for the second quarter ended June 30, 2009 and related management's discussion and analysis (MD&A) with securities regulatory authorities within the applicable timelines. Such financial statements, MD&A and related documents will be available through SEDAR at www.sedar.com as well as through Timminco's website, www.timminco.com.

Conference call

Timminco will host a conference call today (Tuesday, August 11, 2009) at 5:00 pm ET to discuss its financial results for the second quarter of fiscal 2009. To access the conference call by telephone, dial 416-644-3423 or 1-800-594-3790. Please connect approximately 15 minutes prior to the beginning of the call to ensure participation. The conference call will be archived for replay until Tuesday, August 18, 2009 at midnight. To access the archived conference call, dial 416-640-1917 or 1-877-289-8525 and enter the reservation number 21311613#.

A live audio webcast of the conference call will be also available at www.timminco.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be available for replay at www.timminco.com following the live presentation.

About Timminco

Timminco produces solar grade silicon for the solar photovoltaic energy industry. Using its proprietary, patent pending technology, Timminco purifies silicon metal into solar grade silicon (also known as upgraded metallurgical silicon) for use in the manufacture of solar cells. Timminco also produces silicon metal, magnesium extrusions and other specialty metals for use in a broad range of industrial applications serving the aluminum, chemical, pharmaceutical, electronics and automotive industries.

Cautionary Notes

This news release contains "forward-looking information", as such term is defined in applicable Canadian securities legislation, concerning Timminco's future financial or operating performance and other statements that express management's expectations or estimates of future developments, circumstances or results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects", "believes", "anticipates", "budget", "scheduled", "estimates", "forecasts", "intends", "plans" and variations of such words and phrases, or by statements that certain actions, events or results "may", "will", "could", "would" or "might" "be taken", "occur" or "be achieved". In this news release, such information includes statements regarding: Timminco's liquidity; the impact of global economic conditions on Timminco's operations and financial results in 2009; the resumption of production and shipments of silicon metal; and enabling customers to create wafers and cells that are indistinguishable from solar cells made from polysilicon. Forward-looking information is based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which Timminco operates, are inherently subject to significant operational, economic and competitive uncertainties and contingencies.Timminco cautions that forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Timminco's actual results, performance or achievements to be materially different from those expressed or implied by such information, including, but not limited to: global economic conditions; liquidity risks; credit risks; customer commitments for solar grade silicon; customer deposits; solar grade silicon production costs; quality of solar grade silicon; selling prices for solar grade silicon and silicon metal; producing ingots with the Company's solar grade silicon; production capacity expansion at the Becancour facilities; pricing and availability of raw materials; limited history with solar grade silicon production; protection of intellectual property rights; dependence upon power supply; customer concentration; returns of scrap material; closure of former magnesium facilities; investment in Applied Magnesium; interest rate risks; financing for capital expenditures; foreign currency exchange; environmental liabilities; class action lawsuits; dependence upon key executives and employees; completion and integration of potential acquisitions, partnerships or joint ventures; risks with foreign operations and suppliers; environmental, health and safety laws and liabilities; equipment failures; transportation disruptions; conflicts of interest; intellectual property infringement claims; new regulatory requirements; labour disputes; changes in tax laws; and climate change. These factors are discussed in greater detail in Timminco's Annual Information Form for the year ended December 31, 2008, and in Timminco's most recent Management's Discussion and Analysis, each of which is available via the SEDAR website at www.sedar.com. Although Timminco has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking information, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information in this news release is made as of the date of this news release and Timminco disclaims any intention or obligation to update or revise such information, except as required by applicable law.

Many of the Company's customers are experiencing low sales, are demanding a higher quality of the Company's UMSi due to the availability and favourable pricing of polysilicon on the spot market, and have reduced or deferred their purchases of silicon metal and solar grade silicon. The Company has reached agreements with two of its solar grade silicon customers, to terminate or materially reduce contracted volumes under supply contracts and to repay customer advances, and is in negotiations with other customers to materially amend or terminate supply agreements which would also involve repayment of advances and reducing or eliminating contracted future volumes. These repayments, and the slowdown in the economic environment combined with substantially reduced UMSi shipments, could continue to have a material adverse effect on the Company's liquidity and ongoing compliance with its debt covenants. These and the other risks identified above create uncertainty about the Company's ability to realize its assets and discharge its liabilities in the normal course of business. The consolidated financial statements for the second quarter, when filed, will not give effect to any adjustments to recorded amounts and their classification, which could be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different than those reflected in the consolidated financial statements.

Non-GAAP Financial Measures

(1) EBITDA is not a recognized measure under Canadian generally accepted accounting principles ("GAAP"). Management believes that, in addition to net income (loss),

EBITDA is a useful supplemental measure as it provides investors with an indication of cash available for distribution prior to debt service, past pension service obligations, capital expenditures, income taxes and restructuring cash payments. Investors should be cautioned, however, that EBITDA should not be construed as an alternative to net income determined in accordance with GAAP as an indicator of the Company's performance or to cash flows from operating, investing and financing activities as a measure of liquidity and cash flows. The Company's method of calculating EBITDA may differ from other companies and, accordingly, EBITDA may not be comparable to measures used by other companies. EBITDA is calculated as follows:

(2) Adjusted income (loss) is not a recognized measure under GAAP. However, management believes that, in addition to net income (loss), adjusted income (loss) is a useful supplemental measure as it provides investors with an indication of the ongoing profits generated on products sold to customers after corporate overhead expenses. Management defines adjusted net income as net income before income taxes, impairment of investment in Fundo Wheels, equity in the loss of Fundo Wheels, environmental remediation costs and reorganization costs. Adjusted income (loss) is calculated as follows:

(3) Gross profit is not a recognized measure under GAAP. Management believes that in addition to net income (loss), gross profit is a useful supplemental measure as it provides investors with an indication of the profits generated on products sold to customers before corporate overhead expenses. Investors should be cautioned, however, that gross profit should not be construed as an alternative to net income determined in accordance with GAAP as an indicator of the Company's profitability. The Company's method of calculating gross profit may differ from other companies and accordingly, gross profit may not be comparable to measures used by other companies. Gross profit is calculated as follows: